How Much Does an Outsourced Controller Cost? Breaking Down the Fees

Outsourcing has become a popular option for businesses looking to save money and improve efficiency. But when it comes to financial management, many employers may wonder if hiring an outsourced financial controller is worth the investment. 

With the increasing demand for remote work and global talent, more companies are turning to outsourced controllers for their financial expertise. But what are the real outsourced controller costs?

In this article, we will break down outsourced controller fees and explore how they can be a cost-effective solution for your business needs. 

By understanding the advantages of hiring an outsourced controller, you will gain valuable insights into how it can save your company money while providing you with access to high-level financial expertise.

What Factors Influence Outsourced Controller Costs?

The cost of hiring an outsourced controller can vary depending on various factors, such as:

Headcount and team size

The size of your business and the complexity of its financial operations will impact the cost of an outsourced financial controller. Larger companies with multiple subsidiaries or complex financial structures may require a larger team, resulting in higher fees.

Services offered

The services provided by an outsourced controller can also affect the cost. Some controllers may offer basic bookkeeping and financial reporting, while others may provide more extensive services, such as budgeting, forecasting, and strategic planning.

Industry-specific requirements

Certain industries may have specific financial regulations and reporting requirements, which can increase the cost of hiring an outsourced controller with expertise in that field. 

For example, a healthcare company may require a controller with knowledge of HIPAA regulations, while a technology firm may need someone familiar with SaaS revenue recognition.

Location of outsourced controllers

The location of outsourced controllers can also impact the cost. Hiring a controller from a lower-cost region, such as Latin America (LatAm), can provide significant cost savings compared with hiring someone locally in the US.

Benefits of Outsourced Controller Services

Outsourcing a controller can bring numerous benefits to your business, including the following:

Improved financial reporting

An outsourced controller can provide accurate and timely financial reporting, giving you a better understanding of your company’s financial health. This information is crucial for making informed decisions and ensuring compliance with regulations.

Access to expert financial guidance

Outsourced controllers are highly skilled and experienced professionals who can provide expert financial advice and guidance. This level of expertise may not be possible with an in-house controller, as it can be costly to hire a top-level financial expert full-time.

Enhanced operational efficiency

With an outsourced controller, you can focus on your core business activities while leaving your company’s financial management in capable hands. This can improve operational efficiency and allow for better allocation of resources.

Value of Outsourcing vs. In-House Controller

Before diving into the costs, it’s essential to understand the value that an outsourced controller can bring to your business.

Easier hiring process

The average time to hire for a role is 44 days and tends to be even higher for senior-level roles. This means that hiring an in-house controller can be a time-consuming and costly process. It involves advertising the controller position, interviewing candidates, and providing benefits such as insurance and retirement plans. 

Outsourcing a controller through a recruitment firm eliminates these tasks, making it easier to find top-level financial expertise without the added expenses.

Cost comparison

The in-house US controller’s average salary is around $130,000 per year. But this doesn’t include the additional expenses of hiring a full-time employee, such as benefits and office space, not to mention the cost of making the wrong hire.

In contrast, outsourcing a controller can cost around $42,000 per year when hiring from LatAm, depending on the scope of work and experience level.

Resource allocation

An in-house controller may not always have the necessary skills or experience to handle all financial tasks efficiently. This can result in the need to hire additional in-house staff, further increasing overhead costs for your business. 

With outsourced controllers, you have access to experts with diverse skill sets who can handle a wide range of financial responsibilities effectively.

Expertise and experience

Outsourced controllers often have extensive experience working with multiple clients, giving them a broad knowledge base and understanding of best practices. 

This expertise can be invaluable for businesses looking to improve their financial management processes and make data-driven decisions, especially because your local talent pool may have limited experience and specialized knowledge.

Pricing Models for Outsourced Controllers 

Businesses use one of three main pricing models to pay their outsourced controllers: hourly rates, fixed monthly fees, or performance-based pricing.

Hourly rates

Hourly rates are the most common pricing model for outsourcing financial services. The hourly rate for outsourced controllers is around $66.54 on average in the US, but costs can increase or decrease depending on their level of experience and location. 

While this may seem like a significant cost, it is important to remember that an in-house controller can cost a business upwards of $130,000 per year, as mentioned in the last section.

Fixed monthly fees

Fixed monthly fees involve paying a set amount each month for outsourced controller services. This pricing model is beneficial for businesses with a predictable workload that want to avoid any unexpected costs. 

The cost can range from $1,000 to $10,000 per month, depending on the complexity of your business’s financial needs.

Performance-based pricing

Performance-based pricing is a more flexible model that ties the fee to specific outcomes or goals achieved by the outsourced controller. These can include reducing costs, increasing profits, or improving financial processes. 

In this model, businesses only pay a percentage of the financial benefits achieved through the outsourced controller’s services.

How To Select the Right Outsourced Controller To Get the Maximum ROI

While each payment method can add up, there are a few ways you can ensure you are getting the highest return on investment (ROI) from your outsourced controller.

Evaluate potential providers

First and foremost, it is crucial to thoroughly research and evaluate potential providers before making a decision. Look for experienced professionals with strong financial backgrounds and a track record of success.

For a good starting point, see our list of top outsourced controller providers later in this article.

Review pricing options

As mentioned above, you can pay for outsourced controller services in different ways: hourly rates, monthly retainers, or project-based fees. Consider which payment structure best aligns with your business needs and budget.

Assess alignment with business needs

It is essential to assess how well the outsourced controller’s services align with your business needs. Are they providing value and expertise in areas that are critical for your company? Make sure their skills and experience match what you require.

Consider the potential for a long-term partnership

Hiring an outsourced controller can provide long-term financial benefits for your business. Consider the potential for a partnership and how it can lead to cost savings and more specialized services for your business.

Top 4 Outsourced Controller Providers

Not all outsourced controller providers are created equal. It’s crucial to do your research and find a reputable partner that has a track record of delivering quality services. We’ve listed some of the top recruiting and outsourcing firms below in no particular order.

1. Near

Hey, that’s us! At Near, we pride ourselves on being a top recruitment and outsourcing firm specializing in connecting businesses with top-quality financial experts from LatAm. 

We offer comprehensive support throughout the entire hiring process to ensure our clients find the perfect fit for their business needs.

We helped CFO advisory firm Vanreusel Ventures find a finance manager and marketing manager in just a few hours, saving them $161,000 in annual overhead. With our hiring experts, you can find an experienced controller just as easily.

2. AccountingDepartment.com

AccountingDepartment.com is a nationwide accounting, bookkeeping, controller, and advisory service with owners based in Florida and Connecticut. Since 2004, it has helped US companies with revenue of between $5 million and over $100 million.

Its outsourced controller services include financial reporting, accounting documentation, key metric benchmarking, establishing internal controls, overseeing accounting staff, advising financial decisions, and more.

3. EisnerAmper

With locations throughout the US and the world, EisnerAmper provides audit, accounting, advisory, consulting, and tax services to large enterprises, privately owned companies, governmental entities, and high-net-worth individuals.

Its outsourced controller services include creating audit work papers, establishing and maintaining capitalization tables, and managing the financial statement audit process.

4. Driven Insights

Driven Insights is a Wilmington, Delaware-based finance outsourcing company. It specifically serves SaaS, growth SMB, recurring revenue, and tech-enabled businesses.

The firm’s outsourced controller services include sophisticated reporting, deep analysis, scalable systems, process management, team oversight, internal controls, and day-to-day accounting and bookkeeping tasks.

Final Thoughts

The cost of hiring an outsourced controller may vary depending on your specific business needs and the provider’s pricing structure. However, it is important to remember that the benefits of expertise and efficiency far outweigh any costs associated with outsourcing. 

By partnering with a reliable and experienced recruitment firm like Near, you can find top-level financial experts from LatAm who can help your business save money while providing strategic insights and support for your financial management needs. 

To learn more about the process of recruiting these financial professionals, see our article on how to successfully hire an outsourced controller.